Grievance Handling System
Samsung Electronics makes a concerted effort to handle supplier grievances, while also listening to the concerns of their workers. We operate the Hotline for first-tier suppliers and the Cyber Sinmungo (Online Whistleblowing Channel) to resolve disputes between first-tier suppliers and second-tier or lower suppliers or external stakeholders. Starting in 2024, the Hotline, which was previously available only to first-tier suppliers, has been expanded to include second-tier suppliers to better address grievances from workers in the lower tiers of the supply chain.
Hotline
Since 2013, we have been operating the Hotline to receive reports of violations of labor environment standards or human rights abuses within our suppliers' companies that can be accessed via telephone and email. After verifying the facts, we take the necessary measures. We also ensure the protection of informants’ confidentiality throughout the entire grievance process so that our suppliers’ employees can submit reports without fearing retaliation. We provide the Hotline guidance posters in local languages and post them in offices, corridors, production sites, dormitories, and cafeterias.
Our organizational unit dedicated to grievance management verifies the factual grounds of all reports within one week of submission, notifies informants of the findings and steps to be taken, and monitors respective suppliers to ensure that they take remedial actions. We strive to engage our suppliers’ workers in co-designing grievance procedures to build a more reliable grievance system. We collect workers’ suggestions for improving the Hotline system through compliance workshops and interviews during on-site audits.
To monitor whether the reported grievances are being remedied effectively, we carry out informant satisfaction surveys since 2020. In 2024, we received 40 grievance reports from first-tier suppliers and 17 from second-tier suppliers. Samsung Electronics collaborated with the suppliers to identify the causes and provide training to prevent recurrences, and confirmed the implementation of corrective measures, ensuring all grievances were addressed.
Types of grievances submitted through the Hotline
(Unit: Number of submitted cases)
Cyber Sinmungo(Online Whistleblowing Channel)
Since 2010, DX Division has been operating Cyber Sinmungo to receive complaints from various stakeholders, including first-tier suppliers, sub suppliers, and even non-manufacturing suppliers with whom we transact directly or indirectly. Suppliers and their workers can report various issues or concerns through the grievance channel (Cyber Sinmungo) on our externally accessible Purchasing System or via an external email account, with the option to remain anonymous.
We process all cases promptly, transparently, and fairly, and each case is handled in accordance with established procedures and standards. Following a thorough fact-checking process, we share the outcomes. For cases requiring a long-term review, we work to resolve issues by forming stakeholder consultation bodies including relevant departments, even if it takes additional time.
In 2024, we handled all 190 cases we received. Starting in 2025, we plan to upgrade the system to enhance user convenience and enable faster responses.
Types of grievances submitted through the Cyber Sinmungo
(Unit: Number of cases)| Type | Processing completed |
|---|---|
| Total | 190 |
| Improving business relationships | 3 |
| Payment | 104 |
| Compensation | 10 |
| Humane treatment | 34 |
| Other | 39 |
Grievance Reporting Channel Through the Partnership Collaboration Portal
DS Division receives grievances from suppliers through various channels, including anonymous and full-disclosure bulletin boards via the partner collaboration portal, phone calls, and emails. We continuously promote these grievance channels to improve suppliers’ working environments. We also run CEOs On-Talk for supplier CEOs, so they can discuss company management challenges and devise solutions. In 2024, we held monthly face-to-face and virtual meetings with 378 suppliers of DS Division to share accident analyses and environment and safety policies.
Performance in 2024
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Total of 719 cases received
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Total of 708 cases processed